S in ESG: Bewertung sozialer Nachhaltigkeit bei Immobilien - Kritische Bestandsaufnahme der Sozialtaxonomie und Grenzen der Zertifizierungssysteme
TU Vienna
2024
Marianne Sar
This master's thesis, titled "S in ESG: Assessment of Social Sustainability in Real Estate - Critical Analysis of Social Taxonomy and Limitations of Certification Systems," was authored by Marianne Sar and submitted in February 2024 at a university in Vienna, Austria. It delves into the pressing issue of how social sustainability is identified and evaluated within the realm of real estate, particularly focusing on commercial properties. The research highlights the increasing significance of social factors within Environmental, Social, and Governance (ESG) frameworks, contrasting it with the prevailing focus on environmental considerations. The thesis outlines the EU Social Taxonomy proposal, which categorizes three primary stakeholder groups: employees, users/consumers, and communities. It sets forth objectives aimed at promoting decent work, ensuring adequate living standards, and fostering inclusive communities. A critical analysis of the ÖGNI certification system reveals that only a fraction of the criteria address social sustainability adequately, exposing substantial gaps in current assessment methods. Notably, while socio-cultural quality criteria align well with the taxonomy, economic quality criteria show no alignment. Moreover, the research underscores the limitations of existing certification systems, which fall short in comprehensively covering social aspects. Sar recommends the development of additional criteria and the integration of insights from other frameworks like GRESB and the ICG model. This thesis not only provides a thorough evaluation of social sustainability metrics in real estate but also emphasizes the urgent need for standardized measurement approaches to enhance social impact assessment within the built environment.
This master's thesis titled "S in ESG: Assessment of Social Sustainability in Real Estate - Critical Analysis of Social Taxonomy and Limitations of Certification Systems" was written by Marianne Sar and submitted in February 2024 at a university in Vienna, Austria.
Context and Purpose
The thesis examines how social sustainability can be identified, measured and evaluated in real estate, with a particular focus on commercial properties. It analyzes the growing importance of social aspects within ESG frameworks while highlighting the current emphasis on environmental factors in the real estate sector.
Key Findings
Social Taxonomy Framework
- The EU Social Taxonomy proposal identifies three main stakeholder groups: employees, users/consumers, and communities/society
- It establishes three primary objectives: promoting decent work, ensuring adequate living standards and wellbeing, and fostering inclusive communities
- The framework differs from environmental taxonomy as it relies more on conventional standards rather than scientific metrics
Certification Systems Analysis
- The study focuses on the ÖGNI (Austrian Sustainable Building Council) certification system
- Out of 45 total ÖGNI criteria, only 22 were found relevant for social sustainability assessment
- The system covers only 59% of the Social Taxonomy's 37 sub-objectives, revealing significant gaps
- Socio-cultural quality criteria showed 100% alignment while economic quality criteria showed zero alignment
Limitations and Recommendations
- Current certification systems lack comprehensive coverage of social aspects
- 15 additional criteria need to be developed to fully align with Social Taxonomy requirements
- The thesis proposes integrating perspectives from other frameworks like GRESB and ICG model
- Suggests more flexible assessment approaches to account for different contexts and situations
Significance
The research provides one of the first comprehensive analyses of how real estate certification systems align with the proposed EU Social Taxonomy. It identifies specific gaps and proposes concrete ways to enhance social sustainability assessment in the real estate sector, particularly for commercial properties.
The thesis contributes to the emerging discussion on social sustainability metrics in real estate while highlighting the need for more standardized approaches to measuring and evaluating social impact in the built environment.